You been hired as a Bank Loan Manager, in the commercial lending division of a bank. You are responsible for approving loans to commercial businesses. The management of Charger Company, a private company in America, has applied for a $350,000 long-term loan. You have requested the following information from the company to perform the due diligence and have noticed: 1 The company pays monthly lease payments of $8,500 for its fleet of vehicles The company pays annual interest expense of $65,000 on its loans The company pays annual lease principal payments of $85,000 The company spends $4,500 annually to replace some of its computer equipment The company pays $105,000 in taxes for the current year The company generates Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $390,000 1. Please calculate Charger Company's Fixed-Charge Coverage with work shown. Formula: EBITDA - Capital Expenditure - Cash Taxes Interest + Principal (+ Capital Lease Payments) 2. Would you approve the loan request? Why/why not